What is unique about a non-profit?

From a decision-making perspective, a non-profit organization will typically have a complex value structure for one reason: they value something other than profit. It could be feeding the homeless or increasing literacy.

An organization's value structure is a statement of what they ultimately want to achieve; what their actions are ultimately designed to produce. It is what they tend not to trade off for anything else.

Non-profits also tend to have many of the same issues and choices that for-profit organizations face because they need financial resources to fund programs. This duality adds to the complexity of choices that a non-profit faces when managing their scarce resources.

The other aspect that makes non-profit decision-making more challenging is that it is often difficult to define clearly measurable outcomes that represent their ultimate objective. Profit is easily measured and compared one project to another. In contrast, there is no common denominator for most non-financial metrics.

Defining and discussing an explicit value structure should be an integral step for every organization that faces a complex decision, and Collabria can help guide your organization through that work.